Johor Bahru Accounting Firm

Taxation – E-Invoice (PART 1: General Frequently Asked Questions)

TAXATION 

E-Invoice

(Taxation – E-Invoice (PART 1: General Frequently Asked Questions))
Accounting Firm (Bandar Dato Onn ACCOUNTANT) 新山会计楼
  1. IS E-INVOICE APPLICABLE TO TRANSACTIONS IN MALAYSIA ONLY?

No, e-Invoice is applicable to both domestic and cross-border transactions. The cross-border transactions include import and export activities.

For clarity, the compliance obligation is from the issuance of e-Invoice perspective. In other words, taxpayers who are within the annual turnover or revenue threshold as specified in Section 1.5 of the e-Invoice Guideline are required to issue and submit e-Invoice for IRBM’s validation according to the implementation timeline.

2. WILL THERE BE ANY ENGAGEMENT SESSIONS WITH IRBM?

IRBM is actively conducting a series of engagement sessions with industry players, tax practitioners, professional bodies and identified stakeholders to provide comprehensive information regarding the implementation of e-Invoice in Malaysia including:

Sharing the planning of action plans, strategies, and status developments regarding the implementation of e-Invoice; and

Obtaining feedback and views through two-way communication between IRBM and taxpayers on the implementation of e-Invoice.

3. WHO SHOULD WE REACH OUT TO IF THERE ARE QUERIES OR CONCERNS?

For any queries regarding the e-Invoice implementation in Malaysia, kindly send an email to myinvois@hasil.gov.my

4. WHAT E-INVOICE MODEL WILL BE ADOPTED?

IRBM will adopt the Continuous Transaction Control (CTC) Model where the validation is done in near real-time by IRBM.

5.WHAT ARE THE THRESHOLDS FOR E-INVOICE IMPLEMENTATION TO BE APPLICABLE TO TAXPAYERS?

All taxpayers are required to implement e-Invoice according to the annual turnover or revenue thresholds.

In relation to a company, the annual turnover or revenue threshold refers to the annual turnover or revenue value as stated in the statement of comprehensive income in the FY22 Audited Financial Statements.

Refer to Section 1.5 of the e-Invoice Guideline for further details.

6. ARE ALL INDUSTRIES INCLUDED IN THE E-INVOICE IMPLEMENTATION? ARE THERE ANY INDUSTRIES EXEMPTED?

Currently, there are no industries that are exempted from the e-Invoice implementation.

Note that certain persons and types of income and expense are exempted from e-Invoice implementation. Refer to Section 1.6 of the e-Invoice Guideline for further details.

7. WILL ALL BUSINESSES BE REQUIRED TO ISSUE E-INVOICE?

 

Yes, all businesses will be required to issue e-Invoice in accordance to the phased mandatory implementation timeline, which is based on the business’ annual turnover or revenue threshold.

8. IS THERE ANY ADJUSTMENT WINDOW ALLOWED TO THE SUPPLIER TO CANCEL AN INVOICE SUBMITTED TO IRBM?

Yes, there is a 72-hour timeframe for the e-Invoice to be cancelled by the supplier. Refer to section 2.4.6 of the e-Invoice Guideline for further details.

9. WILL IRBM PROVIDE ANY TECHNICAL GUIDANCE ON SYSTEM INTEGRATION?

Yes, a Software Development Kit (SDK) will be provided to facilitate system integration.

For Education purposes, we make no representations or warranty (expressed or implied) about the accuracy, suitability, reliability, or completeness of the information for any purpose.  Tee & Co(NF 2298) accepts no liability, and disclaims all responsibility, for the consequences of anyone acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. Recipients should not act upon it without seeking specific professional advice tailored to your circumstances, requirements, or needs